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Chapter 4:Trasformation of Organizational
culture into TQM culture

Definition of cultural
Why is cultural transformation necessary?
Elements of Culture in a TQM Organization
Suggested ways of transforming
organizational culture into TQM culture
Sustaining the TQM culture
 Definition of cultural

Culture is the sum of attitudes, customs,

and beliefs that distinguishes one group of
people from another.
 Why is cultural transformation necessary?

Organizational culture can become dysfunctional

in a rapidly changing business environment.
Changing organizational culture key to
implementing new strategies successfully.
Bureaucratic policies & procedures, along with
managements living in the old paradigm
TQM will be degreased unless a culture is created
based on customer satisfaction, continues
improvement, employee empowerment etc.
Quality-oriented culture imbues people to work in
team & think for everybody
 Elements of Culture in a TQM Organization
Information for improvement: Performance & quality
information must be used by relevant people for
performance improvement, not to judge individual
employees performance.
Equality of authority & responsibility: Authority must
be equal to responsibility. Leaders need to ensure that the
employees responsible for a work/job
Result-oriented rewards: TQM culture emphasizes on
recognition for achievement, both symbolic (certificate,
pin, name on a plaque, newsletter story, etc) & material
rewards (cash bonus, special privileges).
Cooperation among employees: In a TQM cultures,
competitions among employees are avoided & cooperation is
seen as a basis for working together in line with Japan
model.
 Security of jobs: Job security provides an employee-
friendly environment, & it is likely to lead to creation of
a dedicated & motivated workforce in the organization.
Climate of fairness: TQM culture has a direct
relationship with organizational climate of fairness,
which is in most part created by activities & behaviors of
the managers, especially the top-level leaders.
Equitable compensation: Creation of TQM culture
warrants, inter alia, careful attention to reducing, if not
eliminating, gross inequity in the compensation of the senior
managers & the lower-level employees.
Employees ownership stake : Stake of employees in the
corporate ownership (in business firms) or a sense of
ownership in public/government agencies & cooperatives,
works as a significant factor in developing a TQM culture.
Suggested ways of transforming organizational culture into TQM
culture
1)Initiate change from the top leadership: Culture transformation must begin
with the top & from the top of the organizational hierarchy. The starting point is
the CEO, who has to visibly lead the organization in the cultural change

2) Establish a free-flow communication system: An effective multi-way (not

simply two-way) communication system needs to be established for
encouraging free flow of information. Hierarchical barriers have to be broken
down.

3) Ensure involvement of middle management: Evidence shows that middle

management very often resist changes in the organization more than any other

4) Adjust/modify reward & motivation systems: The traditional reward systems

(salary + common benefits) often act as a stumbling block on the way of
cultural change.
 5) Develop employees to their full potential: Changes in
culture & other aspects of the organization will obviously
necessitate new skills for employees to acquire.

6) Intervene in the hiring process: To effectively implement

the culture change programs, it may often be deemed
necessary to hire new employees who share the new values
that is, infusion of new blood.

7) Pay careful attention to management of non change:

There may be values & norms in the organization which may
not be needed to change when cultural change programs are
on.

8) Show concrete example & reshape promotion criteria:

Harvard business professor John Kotter has persuasively
upheld the importance of two factors in anchoring new
approaches in organizations culture.
Sustaining the TQM culture:
Regularly organize customer survey to solicit customers
feedback. Survey results will provide you relevant &
necessary data to improve upon the existing norms &
behaviors.
Match companys vision strategy & culture. These three
must be supportive & their development & implementation
must be integrated.
Make it habit for everyone in the organization to work on
quality issues everyday for some time. Thus quality would
not go out of sight.
Make involvement in total quality a required part of peoples
responsibilities. Making it voluntary implies that it is less
important than the things that are required.
Make involvement in total quality a required part of peoples
responsibilities. Making it voluntary implies that it is less
important than the things that are required.
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